A PAYROLL DEDUCTION SYSTEM AND METHOD FOR USING THE SAME

摘要

A system and method for using an e-duction card as a payment instrument, whereby a purchase price of articles purchased on-line or off-line is deducted from an employee's paycheck. The e-duction card is similar to a credit card but is not bound by the same terms and conditions of a credit card. Merchants sign up with the inventive system and agree to accept the e-duction card is a payment instrument. A magnetic stripe on the e-duction card stores a employee's account information. When a consumer purchases a product and uses the e-duction card as a payment instrument, the account information on the e-duction magnetic stripe is transmitted to a network processor with access to information stored on the database. The processor verifies the employee and merchant status, and the employee account informtion in order to approve or reject the transaction.